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Do You Have a Bitcoin Investment Plan? Find Out Why We Choose Investing vs Trading Cryptocurrencies!

why I favor investing in cryptocurrencies versus trading Do you have a Bitcoin investment plan? Today I wanted to talk to you guys about an interesting topic and once you see a ton of stuff on which is should I invest or should I trade so why I favour investing over trading and crypto currencies while both are effective strategies both can be successful or not be successful both take some time one generally taking much more than the other why I favour investing for me is because I have a lifestyle outside of cryptocurrencies and what I see as far as investing from a from the block Capitol insider value investing platform and how we base our decisions we do a lot of research from the very beginning we figure out the different types of cryptocurrency is what they are what they bring to market the we utilizing the three key aspects to cryptocurrencies which you can find in the link below if you're interested in that and then we make a decision and we we set up goals for our money and how we're going to go about it how we're going to invest whether it's a lump sum or dollar cost averaging or many of the different strategies that we use and then once that set in place we're pretty much done the hard work is over and we just checked back continue to look continuing to analyze slightly is it a profitable investment is it still working out is the company going in the right direction and those type of things now with trading you're looking at at least from what I've done and from what I understand now again I'm not a professional trader but from what I've done and I have made money trading and it's you know it's great it's good you can you know put a few hundred bucks in or you know whatever you're you're risking and you know double that or you know gain ten twenty percent in a day or fifteen percent we're investing you're looking at you generally a longer time trend but as we've seen with cryptocurrency is that investment is you know doubling much much quicker than regular investments but we're treating you have a lot of constant time that you're spending into it you know you can't it's a lot more difficult to have a trade that's open what they say and be away from your computer go on a camping trip for three days you know that's going to be very very difficult for anyone who's a fairly serious trader to do and that's why you see one of the best times to daughter cost average is Friday evening and why is that you ask well because that's what all the traders have bought out for the week they want to take off for the weekend at least that's for sure in the regular market and cryptocurrency is a little bit less just because it is never shuts off market slope or 24/7 but you still see that as far as a Friday kind of pullback period so that's one thing and that's my biggest why I invest I have an outside in some income core excuse me I have an outside income in which I take a portion of that and I invested in the cryptocurrencies I'm not looking for cryptocurrencies to be my main source of income now would that be great absolutely and then I am i turning anyone off from training no not all if you guys think that that lifestyle is for you then please go ahead get after it I encourage anyone to try you know if you if you think you want that lifestyle then go for it but from my experience from what I've done I honestly I like being able to go out at night I like being able to relax I like being able to have a good time go on vacation for a week and again it's because I do have that outside income and if you don't pay maybe trainings for you but if you're looking to take something takes up take some of your income that you generate from another area and invest a certain portion of it like we had what we had Mark Cuban's say 10% that's the mr Shark Tank himself said invest 10% if you're younger in a risky asset such as Bitcoin or other crypto Francie's I think that's pretty powerful stuff there guys so investing is definitely the route I choose and it's the route that we explain in much further detail in our value investing in cryptocurrency course at the block capital insider

com platform so if you guys are interested in that check out the link below give it a look send us your email you'll also get access to our first BCI report as well as our glossary of terms which I can tell you is the best most comprehensive glossary of terms on the blockchain technology on the entire Internet I can tell you that for a fact so if you guys enjoyed this video please like and subscribe thanks for listening guys we wouldn't be here without you don't forget to comment I love reading your guys's comments below so please thanks again guys take care till next time

Source: Youtube

How does a blockchain work – Simply Explained

Blockchains are incredibly popular nowadays But what is a blockchain? How do they work, what problems do they solve and how can they be used? Like the name indicates, a blockchain is a chain of blocks that contains information

This technique was originally described in 1991 by a group of researchers and was originally intended to timestamp digital documents so that it’s not possible to backdate them or to tamper with them Almost like a notary However it went by mostly unused until it was adapted by Satoshi Nakamoto in 2009 to create the digital cryptocurrency Bitcoin A blockchain is a distributed ledger that is completely open to anyone They have an interesting property: once some data has been recorded inside a blockchain, it becomes very difficult to change it

So how does that work? Well, let’s take a closer look at a block Each block contains some data, the hash of the block and the hash of the previous block The data that is stored inside a block depends on the type of blockchain The Bitcoin blockchain for example stores the details about a transaction in here, such as the sender, receiver and amount of coins A block also has a hash

You can compare a hash to a fingerprint It identifies a block and all of its contents and it's always unique, just as a fingerprint Once a block is created, it’s hash is being calculated Changing something inside the block will cause the hash to change So in other words: hashes are very useful when you want to detect changes to blocks

If the fingerprint of a block changes, it no longer is the same block The third element inside each block is the hash of the previous block This effectively creates a chain of blocks and it’s this technique that makes a blockchain so secure Let's take an example Here we have a chain of 3 blocks

As you can see, each block has a hash and the hash of the previous block So block number 3 points to block number 2 and number 2 points to number 1 Now the first block is a bit special, it cannot point to previous blocks because it's the first one We call this the genesis block Now let's say that you tamper with the second block

This causes the hash of the block to change as well In turn that will make block 3 and all following blocks invalid because they no longer store a valid hash of the previous block So changing a single block will make all following blocks invalid But using hashes is not enough to prevent tampering Computers these days are very fast and can calculate hundreds of thousands of hashes per second

You could effectively tamper with a block and recalculate all the hashes of other blocks to make your blockchain valid again So to mitigate this, blockchains have something called proof-of-work It's a mechanism that slows down the creation of new blocks In Bitcoins case: it takes about 10 minutes to calculate the required proof-of-work and add a new block to the chain This mechanism makes it very hard to tamper with the blocks, because if you tamper with 1 block, you'll need to recalculate the proof-of-work for all the following blocks

So the security of a blockchain comes from its creative use of hashing and the proof-of-work mechanism But there is one more way that blockchains secure themselves and that's by being distributed Instead of using a central entity to manage the chain, blockchains use a peer-to-peer network and anyone is allowed to join When someone joins this network, he gets the full copy of the blockchain The node can use this to verify that everything is still in order

Now let's see what happens when someone creates a new block That new block is send to everyone on the network Each node then verifies the block to make sure that it hasn't been tampered with If everything checks out, each node adds this block to their own blockchain All the nodes in this network create consensus

They agree about what blocks are valid and which aren't Blocks that are tampered with will be rejected by other nodes in the network So to successfully tamper with a blockchain you'll need to tamper with all blocks on the chain, redo the proof-of-work for each block and take control of more than 50% of the peer-to-peer network Only then will your tampered block become accepted by everyone else This is almost impossible to do! Blockchains are also constantly evolving

One of the more recent developments is the creation of smart contracts These contracts are simple programs that are stored on the blockchain and can be used to automatically exchange coins based on certain conditions More on smart contracts in a later video The creation of blockchain technology peaked a lot of people’s interest Soon, others realized that the technology could be used for other things like storing medical records, creating a digital notary or even collecting taxes

So now you know what a blockchain is, how it works on basic level and what problems it solves Want to learn how you can implement a simple blockchain with Javascript? Then checkout this video here And as always: thank you very much for watching